Average prices of polyester staple fibers continued declining in China in the past week, down about 500 yuan per ton (6 US cents per kilo) to 9,600 yuan per ton (US$1.16 per kilo). .
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PSF prices are now back to the level of mid-September before cotton prices began surging. .
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They later rose above 12,000 yuan before progressively returning to below 10,000 yuan. .
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On the Shengze market, PSF prices fell from 10,550 yuan down to 9,950 yuan. The same decline was observed in Shaoxing while prices decreased from 10,400 down to 9,950 in the Fujian province.PSF prices could now further fall in the coming weeks as a result of the current slowdown in demand. .
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After cotton prices surged, yarn makers began apparently replacing cotton by polyester fibers while price difference between the two raw materials rose from 4,200 yuan by mid-September up to 6,400 yuan by the end of October. .
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Although the gap in costs further increased in the past weeks to about 8,000 yuan (98 cents per kilo), demand for polyester staple fibers declined at the same time. .
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China is actually confronted with excess spun yarn capacities and production is currently falling while spinners prefer waiting for an expected decline in cotton prices. .
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In sharp contrast, prices of polyester chips did not change in the past week or were slightly higher depending on markets. .
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Average price was about 8,400 yuan per ton compared with an import price of about 8,200 yuan (98 cents per kilo). .
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Prices of polyester filament prices continued declining in the past week, with FDY and DTY prices down about 150 yuan per ton (2 cents per kilo) while POY prices remained unchanged or slightly decreased.With the new year approaching, China is now considering a new change in import tariffs of its chemical fibers, in line with its WTO obligations. .
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Tariffs would be lowered to 5%. Imports could be boosted as a result. .
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At the same time, PTA tariffs would now be higher than duties imposed on polyester fibers to the detriment of China polyester industry. .
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PTA imports continued rising this year and are expected further increasing in 2003. .
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PTA prices could also increase in the coming months although they slightly declined in the past weeks. .
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Prices would be stimulated by higher seasonal demand from producers of bottle-grade polyester chips ahead of the summer rise in water consumption.In India, authorities were also asked to PTA reduce tariffs from 20% down to 10%. .
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In Pakistan, yarn producers again asked the government to cut PSF tariffs in order to force domestic producers in lowering their prices. .
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In Egypt, The Holding company for Textiles has issued a tender for 5000 Metric Tons of polyester fibres and 2500 Tons of viscouse fibres.
Date:12/4/2003
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